European CBD Sales Skyrockets
CBD (cannabidiol) sales are exploding across Europe. All thanks to its trending new use as a tobacco substitute. Brightfield Group, a leading market research firm for the legal CBD and Cannabis industries projects that CBD sales in Europe will skyrocket by more than five times in 2023, reaching almost US $1.7 billion. This has increased the interest of companies that produce CBD such as Curaleaf Holdings, Inc., MYM Nutraceuticals Inc., Tilray, Inc., Green Growth Brands Inc., and CV Sciences Inc.
Before now, the Brightfield Group has previously predicted that the global sales of CBD will hit US$22 billion by 2022. This projection has spurred a lot of North American companies like MYM Nutraceuticals Inc. to go in search of global opportunities for CBD products. Accordingly, MYM recently announced three new international CBD projects.
MYM had a stake in Columbia Organica, a project with 3 licenses and involves the manufacture of cannabis derivatives, and also the cultivation of non-psychoactive (CBD) and psychoactive (THC) cannabis. MYM increased their stake in this project to 80% in March.
Also, MYM didn’t waste time to announce the incorporation of a branch company in Mexico, MYM Nutraceuticals Mexico S.A. de C.V. The idea is to become the first-ever CBD company in Mexico with plans to be importing and distributing CBD oils, CBD gummies and other products in the Latin American country.
Following the 2018 Farm Bill, which legalizes the cultivation of hemp-derived CBD in the United States, many new CBD projects are been approved.
MYM and its partners, Aqueous Sciences of Nevada also co-launched a new CBD-rich project with a view to cultivating and distributing hemp-derived CBD. This project, located on a 3000-acre in Nevada will be incorporated under a new company.
Increase in the Potential of Hemp-derived CBD
Aqueous and MYM are prepared to work together with an equal percentage of the new company. The activities of the company will include to extract, manufacture, and distribute hemp-derived products in accordance with all regulations and requirements of the FDA, FTC and USDA.
According to the CEO of MYM, Howard Steinberg: "With the recent passing of the Farm Bill in the US, CBD-rich hemp was removed from the classified drug list, opening the door for farmers to legally grow hemp.” He continued: "Our partnership with Aqueous is in keeping with our new strategic plan to become a global leader in the cultivation, extraction and distribution of hemp and CBD in bulk and for use in our own unique branded products."
According to the terms of the partnership, MYM will be in charge of providing the needed expertise and necessary support in the cultivation process, facilitate import and export, distribution as well as provide access to its development team. Aqueous on the other hand, will provide site management, labor force and any other resources for successful business operation.
MYM’s updated strategic plan for 2019 includes expansion of the company’s reach into hemp products. The Nevada project is certainly in line with this plan and also compliments their plan of constructing one of the world’s largest facilities for the cultivation of cannabis in Australia and Canada.
The potential of CBD is endless. As a result, MYM is placing itself to become a world leader in the cannabis industry through its various global partnerships around the world. They are now a name to be reckoned with in the cannabis sector and brings a lot of their expertise into their various partnerships. In April, MYM made pronouncement that they are in the middle of many negotiations for the production and distribution of hemp and cannabis in South America, North America and South Pacific.
Global CBD Developments
In 2018, CBD sales of CV Sciences, a hemp-CBD company, increased to $48.2 million as against $20.7 million in 2017 – a whopping 133% increase. The company’s industry-dominating brand, PlusCBD Oil contributed immensely to this growth. CV Sciences has just announced recently of their intention to expand the reach of their brand product, PlusCBD Oil. The product is currently available in 3,308 retail stores, up from 2,238 stores as of end of 2018. The company’s stock has also risen to $5.54, up from $3.55 as at end of 2018.
Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc., have a distribution deal with CVS Health Corp., a well-known pharmacy and wellness retail chain. Recently, the retail chain announced that it will begin selling and distribution of CBD products at more than 800 stores. Curaleaf Holdings Inc. announced the agreement on March, and by April, the company’s stock has risen from $6.86 to $10.02. The last few months has seen the company acquiring a lot of assets, including CBD-rich projects.
Tilray Inc. purchased Manitoba Harvest, the largest hemp foods company in North America for $310 million. Tilray intends to introduce CBD products into the company’s brand. Prior to this, they signed a deal to the tune of $100 million with Authentic Brands to formulate and distribute hemp products in many locations across the country.
Green Growth Brands Inc.
North America will be witnessing the presence of Seventh Sense across malls and other retail spaces soon. Seventh Sense is a CBD products line from Green Growth Brands and will be rolling out their Seventh Sense stores and kiosks across a hundred mall locations in the U.S. Green Growth Brands had already signed a deal to this effect with a commercial real estate giant. In addition, Green Growth Brands has an agreement with DSW to distribute branded CBD-infused products in some locations in Canada and the U.S.